Markets and Companies are neither created nor destroyed. They just transform from one form to the another.

I’ll give you some examples. Amazon.com when it started in 95 was a very ambitious project. A few years later, they were raking in 30million dollars as revenues. But where did that money come from? Very few people think about it, but customers are a finite set. God isn’t growing customers on trees yet. So essentially what happens is that since the need hasn’t exemplified, just found a better solution, people switch from one service to another. The year that Amazon.com announced its $30mn revenue stream, the music and bookstore industry had lost close to 2billion dollars. Disruptive? Yep, if you are a startup and on the growth curve, very much so. Scary? Absolutely. Especially if you are three days old and even have a handful of customers.

I think this is a very basic understand that we need to have. Markets are not created. All this talk on Markets, and blah is just a segmentation process that economists and entrepreneurs have to work with to figure out how to shape their product. The truth is that there are consumers and consumers or clients are essentially people. And People are finite. if you work backwards, then so are markets.Read the rest of this entry »